China is launching an antitrust investigation into Nvidia as it wrestles with the US over sanctions on AI chips

China has launched an antitrust investigation into Nvidia over possible violations of the country’s anti-monopoly laws related to its 2020 acquisition of Israeli chipmaker Mellanox Technologies. A Bloomberg Report (via The edge) says the Chinese government approved the $7 billion deal on the condition that Nvidia does not discriminate against Chinese companies and that Mellanox delivers samples of new products to competing companies within 90 days of providing them to Nvidia to ensure that these can maintain equality of performance.

Details of the investigation were not disclosed, but it is notable because of U.S. sanctions that limit Nvidia’s ability to export products to China. Nvidia has tried to get around these restrictions by developing certain products specifically for the Chinese market: When the US Department of Commerce introduced this Limitations for RTX 4090 GPUs For example, in 2023, Nvidia quickly launched this RTX 4090 Da China-only export model designed to circumvent export controls.

The US government has pointed this out dissatisfaction with this approach However, in 2023: US Secretary of Commerce Gina Raimondo said at the Reagan National Defense Forum in December of that year that “we cannot allow China to get these chips, period,” before warning: “If you want a chip for a specific “Redesign around cutting line.” allows them to use AI, I’ll check it the very next day.”

Accordingly, China was an important export market for Nvidia before the sanctions The Guardianbut it now faces increasing competition from Chinese manufacturers: The country accounted for 17% of Nvidia’s sales in the year ending January 2024, down sharply from 26% just two years earlier.

The investigations against Nvidia are not China’s only resistance to the aggressive US sanctions against the country. CNN reported last week that after imposing new restrictions on the sale of semiconductor manufacturing equipment and other access points to U.S. technology, China has banned the sale of various materials used in the production of semiconductors and electric vehicle batteries, including gallium and Germanium, antimony and other “super hard” materials.

“Nvidia wins on performance, which is reflected in our benchmark results and value to customers, and customers can choose which solution is best for them,” an Nvidia representative said in a statement to PC Gamer. “We work hard to provide the best possible products in every region and fulfill our commitments wherever we do business. We are happy to answer any questions regulators may have about our business.”

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China is launching an antitrust investigation into Nvidia as it wrestles with the US over sanctions on AI chips

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